May 2008 RENAULT INVESTOR RELATIONS
RENAULT 2008 STATUS
CHEUVREUX CONFERENCEThierry MOULONGUET, EVP and CFO
May 2008 RENAULT INVESTOR RELATIONS 2
PROGRESS SINCE 200501OUTLOOK FOR 2008 AND BEYOND02
AGENDA
NISSAN UPDATE03
May 2008 RENAULT INVESTOR RELATIONS 3
01 PROGRESS SINCE 2005
May 2008 RENAULT INVESTOR RELATIONS 4
�QUALITYNew Laguna in the Top 3 models of its category in q uality.
�PROFITABILITY6% operating margin in 2009.
�GROWTH+ 800,000 vehicles between 2005 and 2009strongest period of growth in the history of Renaul t.
May 2008 RENAULT INVESTOR RELATIONS 5
0%
1%
2%
6%
2005 2006 2007
RENAULT COMMITTED
3,2%
2,5%
3%
4%
5%
2008 2009
3%
� Purchasing performance
� Manufacturing
� Logistics
� G&A
� Distribution costs
� Investment costs
2009 ObjectivesCOST REDUCTION
- 14%*
- 12%
- 9%
< 4% revenues
- 8% per unit in Europe
- 50%
3,3%
ActualMilestonesCommitment
4,5%
6%
2,56%
* 2008 Objective
May 2008 RENAULT INVESTOR RELATIONS 6
1,323 1,354
COP2005
COP2007
- 184
- 700
+ 199
+ 148+ 102 + 31G&A
Warranty
Manuf. & Log.
Purchasing
Others
+ 1,398
+ 134
R&D
COST REDUCTION & SALES CLEANING IN 2006 & 2007
- 1098
3.3%
Currency
3.2%
Context Growth Costs
- 2.2% (884) - 2.7% (1,098) + 4.9% (1,981)
Volume / Mix / PriceEnrichment, Rebates
Raw Materials
(all figures in million euros)
May 2008 RENAULT INVESTOR RELATIONS 7
� Purchasing performance
� Manufacturing
� Logistics
� G&A
� Distribution costs
� Investment costs
2009 Objectives2009 Objectives
- 9.1% - 14%*
- 5.4% - 12%
- 7.3% - 9%
- 5% < 4% revenues(ie 4.8% rev.)
+ 3.1% - 8% per unit in Europe
- 35% - 50%
2007 2007 vsvs 20052005
* 2008 Objective
COST REDUCTION
May 2008 RENAULT INVESTOR RELATIONS 8
SALES INCENTIVE EVOLUTION
Jan05
4-month rolling average in Europe since Jan. 2005
Apr05
Jul05
Oct05
Jan06
Apr06
Jul06
Oct06
Jan07
Apr07
Jul07
Oct07
Jan08
New Twingo
New Laguna
May 2008 RENAULT INVESTOR RELATIONS 9
CAPACITY CHANGE
2005 2007
WESTERN EUROPE
- 326k
Outsideof WE*
+ 200k
* Iran figures not incl.
PRODUCTION OUTSIDE OF WE FOR SALES IN WE
2005 = 19%2007 = 33%
May 2008 RENAULT INVESTOR RELATIONS 10
May 2008 RENAULT INVESTOR RELATIONS 11
LAGUNA TOP 3 QUALITY ON TRACK
LAUNCH +2w +4w +6w +8w +10w +12w +14w +16w +18w +20w +22w +24w +26w +28w
Warranty claims up to 28 weeks after sales launch
Modus
Clio
Twingo
Laguna
Laguna Estate
May 2008 RENAULT INVESTOR RELATIONS 12
GLOBAL LAGUNA’S SALES
0
2,000
4,000
6,000
8,000
10,000
12,000
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
2005 2006 2006 2007 2007 2008
14,000
16,000
J F M
Laguna II New Laguna
May 2008 RENAULT INVESTOR RELATIONS 13
LAGUNA’S EUROPEAN NET SALES REVENUES PER UNIT
Laguna II
New Laguna
> + 20%
JAN 2005 JAN 2006 JAN 2007 JAN 2008
May 2008 RENAULT INVESTOR RELATIONS 14
May 2008 RENAULT INVESTOR RELATIONS 15
RENAULT ‘B’ SEGMENT IN EUROPE
0
5,000
10,000
15,000
20,000
25,000
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
2005 2006 2006 2007 2007 2008
J F M
Twingo II
Clio II HB
Twingo I
May 2008 RENAULT INVESTOR RELATIONS 16
International
+21.4%
+ 0.8%
FranceFrance+ 6.3%+ 6.3%
GlobalGlobal
20082007
810
France+Europe
Commercial results : YTD figures at the end of Apri l 2008 +76,000 CARS vs. 2007 at the end of four months
Thousand units (PC+LCV)J+9 Data
868
+ 7.1 %+ 7.1 %EuropeEurope
20082007
-- 2.3 %2.3 %
335343
FranceFrance
20082007
+ 5.8%+ 5.8%
231218
AsiaAsia AfricaAfrica
2007 20082007 20082007 2008
55
76
+ 38.8%+ 38.8%
115
EuroMedEuroMed
134
+ 16.6%+ 16.6%AmericasAmericas+ 16.4%+ 16.4%
9279
May 2008 RENAULT INVESTOR RELATIONS 17
International
+22.1%
-0.2%
2007
162
2008
FranceFrance+ 6.3%+ 6.3%
EuropeEurope
20082007
257 246
-- 4.3%4.3%GlobalGlobal
20082007
600
AsiaAsia AfricaAfrica
42
2007 2008
59
+ 41.7%+ 41.7%AmericasAmericas
+ 10.5%+ 10.5%
2007
67
2008
6078
2007
EuroMedEuroMed
2008
94
+ 20.5%+ 20.5%
France+ Europe
+39,000 CARS VS. 2007 AT THE END OF MARCH 2008
Thousand units (PC+LCV)
639
172
+ 6.5 %+ 6.5 %
May 2008 RENAULT INVESTOR RELATIONS 18
RENAULT GROUPREVENUES BY DIVISION Q1 08 YTD
* 2007 data has been restated on a consistent basis
In million euros YTD 2008Change
(%)YTD 2007Pro forma*
Automobile
Sales Financing
TOTAL
9,306
487
9,793
9,697
506
10,203
+4.2%
+ 3.9%
+ 4.2%
May 2008 RENAULT INVESTOR RELATIONS 19
02 OUTLOOK FOR 2008 AND BEYOND
� Our strategy
� Growth in Europe
� Growth outside of Europe
� CO2 update
May 2008 RENAULT INVESTOR RELATIONS 20
20072006
Logan MCV
Logan Van
Twingo
Laguna
QM5 (Corée)
Sandero (Amér.)
Sedan, successorto Clio Symbol
H1 2008
Clio Grand Tour
Logan Pick-up
Laguna Coupé
Kangoo PC+LCV
Grand Modus
Kangoo Compact
Mégane
H2 2008
Expansion
models
Replacementmodels
THE PRODUCT OFFENSIVE 2006-2008
May 2008 RENAULT INVESTOR RELATIONS 21
YOUNGER MODEL RANGE IN EUROPE
Monthly average estimated model age
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
2001
Age (years)
2002 2003 2004 2005 2006 2007 2008 2009
May 2008 RENAULT INVESTOR RELATIONS 22
India
W. E
urop
eBra
zilS. K
orea
E. Eur
ope
Iran
Indon
esia
Pakist
anGCCTur
key
Ukrain
eMexic
oIra
qMag
hreb
Venez
uela
Argen
tina
Austra
lia
Taiwan
Malay
sia
Roman
iaChil
e
0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
Mill
ion
units
Colom
biaSou
th Afri
ca
Philip
pines
Vietna
m
Egypt
Kazak
hsta
n
Russia
China+4.9M
Thaila
nd
WHERE THE GROWTH WILL BE…
2006-2015 TIV growthR&N Corporate Planning consensus
Mature markets
Semi-mature
New Fast Growing Markets (NFGM)
BRIC
May 2008 RENAULT INVESTOR RELATIONS 23
2008-2009 FORECAST FOR SEGMENT SALES VARIATION
0 +100k 200k
D/E
C
A&B
B0
- 200k - 100k
LCV
0 +100k 200k
C
A&B
B0
- 200k - 100k
FRANCE + EUROPE INTERNATIONAL
D/E
LCV
May 2008 RENAULT INVESTOR RELATIONS 24
� 6 Logan-platform derivatives by 2009
more to come 2010 - 2012:� Strong transaction price evolution
(euro) 20062006 2007 2007 Q1 2008Q1 2008France: ~10,500 ~10,600 ~10,900Romania: ~ 8,200 ~ 8,400 ~8,500Russia : ~8,700 ~8,800 ~8,800MCV ATP remains 2000 – 2500 euros higher than sedan
Logan SedanSOS: Sept. 2004
Logan MCVSOS: Oct. 2006
Logan VanSOS: Feb. 2007
SanderoSOS: 2008
Pick-upSOS: 2008
CrossoverSOP: 2009
More to come2010 - 2012
Logan…a unique economic equation
Full speed in International expansion
May 2008 RENAULT INVESTOR RELATIONS 25
160160
250
0
100
200
300
00 01 02 03 04 05 06 07 08 09 10
RSM sales in Korea
Production in KoreaVolumes (thousand units)
Year
119
Max. capacity
BUSAN PLANT OUTPUT
Export
300
Renault Samsung Motors
Full speed in International expansion
March 2008 RENAULT INVESTOR RELATIONS 26
LCC SOURCING: JOINT FORECAST FOR PARTSBY PURCHASING & ENGINEERING TEAMS
LCCfor HCC*
62%
26%
2007status
84%
33%
2009forecast
all projects
LCCfor LI* + LCC
36%
2009J95 forecast* LI: Local Integration
* HCC: High Cost Countries
May 2008 RENAULT INVESTOR RELATIONS 27
COST COMPETITIVENESS: TODAY & TOMORROW
Iran
China
Russia & Thailand
Morocco
South KoreaRomania
Turkey
India
Com
petit
iven
ess
Com
petit
iven
ess
Colombia
Brazil
Argentina
Renault assembly plant
South Africa
Nissan assembly plant
Russia (Avtovaz)
Russia (Avtoframos)
Partner assembly plant
Sourcing for Renault group plants
South Korea
China
India (Chennai)
India (Mumbai)
Iran (PK & IK)
Romania
Turkey
Morocco
26%
2007status
33%
2009forecast
LCCfor HCC*
*LCC: low cost countriesHCC: high cost countries
+
-
May 2008 RENAULT INVESTOR RELATIONS 28
RUSSIA: AvtoVaz (Lada) & Renault
Synergies:
• Technology and R&D
• Engineering
• Purchasing and supplier development
• Product development
#1 Automaker in Russia• Lada holds 30% of the market
• 710K units in 2007
• Togliatti plant:
• approx. 1 million units capacity
Light Light VehicleVehicle Sales in Sales in RussiaRussia
Source: JD Powers
e e e e e
Full speed in International expansion
May 2008 RENAULT INVESTOR RELATIONS 29
…A permanent benchmark
� A common purchasing structure: RNPO
� Common platforms
� Development of Interchangeable components
־ Opportunity -- €500 M / year (2010 and beyond)
� Cross-manufacturing
� Cooperation on leading technologies
� Contribution to net result and dividend flows
Leveraging the Renault-Nissan Alliance…
431
FY 2006
456
FY 2007
383DividendsDividends
FY 2005In million euros
May 2008 RENAULT INVESTOR RELATIONS 30
ALLIANCE EXTENSION ON INTERNATIONAL OPERATIONS
PARTNER INDUSTRIALSUPPORT AVTOVAZ
INDUSTRIALCAPACITY
EXTENSION
TangerTangerMorrocoMorroco
ChennaiChennaiIndiaIndia
Alliance Ultra Low Cost Car with BajajAlliance Ultra Low Cost Car with Bajaj
Zero-emission Electric Vehicle
May 2008 RENAULT INVESTOR RELATIONS 310
200
400
600
800
1,000
1,200
2000 2001 2002 2003 2004 2005 2006 2007 2008
1,000,000
1/3 emitting less than 120 g/km CO 2
1 million vehicles emitting less than 140 g/km CO 2 in 2008
42 versions42 versions
16 versions16 versions
121-140
101-120European Union sales(thousand vehicles)
ENVIRONMENTA WIDE OFFER UNDER 140 g/km CO 2
122 versions122 versions
35 versions35 versions
333,333
Emission level (g/km CO2)
May 2008 RENAULT INVESTOR RELATIONS 32
ENVIRONMENTAL EXCELLENCE
� Less than 140g/km of CO2
� Model for France label
Between 121 and 140 g/km C
Low CO 2 emission
High CO 2 emissions
Less than/= to 100 g/km
between 101 and 120 g/km
between 141 and 160 g/km
between 161 and 200 g/km
between 201 and 250 g/km
More than 250 g/km
A
B
between 121 and 140 g/km C
D
E
F
G
Clio III 1.5 dCi
117 gbetween 101 and 120 g/km B
New Twingo 1.5 dCi
113 g
Laguna III dCi 110
130g130g
Grand Modus 1.5 dCi
119 g
Clio Grand Tour 1.5 dCi
117 g
May 2008 RENAULT INVESTOR RELATIONS 33
NISSAN UPDATE03
May 2008 RENAULT INVESTOR RELATIONS 34
Nissan FY 07 results –key highlights
May 2008 RENAULT INVESTOR RELATIONS 35
Nissan new mid-term plan
May 2008 RENAULT INVESTOR RELATIONS 36
VISIBILITY ON DIVIDEND INCREASE
In € per share
Dividends paid
Dividends to be proposed
2.42.43.13.1
1.81.8
4.54.5
0
1
2
3
4
5
2005 2006 2007 2008 2009
3.83.8
Nissan dividend policy
May 2008 RENAULT INVESTOR RELATIONS 37
Laguna Coupé Concept
May 2008 RENAULT INVESTOR RELATIONS 38
RENAULT INVESTOR RELATIONS
Veronique Dosdat Gerry Spahn
+33 176 84 53 09 +33 176 83 05 [email protected] [email protected]
Sophie Burel
+33 176 84 60 [email protected]
Investor internet site:
www.renault.com finance
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